ANSCBL Loan Scam: Exposing the Power of Attorney Loophole

An investigation into the Andaman and Nicobar State Cooperative Bank Ltd scam uncovered irregularities involving loans sanctioned on 'power of attorney for land'. Former Congress MP Kuldeep Rai Sharma and others were implicated. The Enforcement Directorate has launched a parallel probe, revealing fraudulent loans worth over Rs 500 crore.

The Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL) is embroiled in a significant loan scam involving former Congress MP Kuldeep Rai Sharma. Investigations uncovered that many loans, amounting to over Rs 80 crore, were sanctioned against properties mortgaged through 'power of attorney for land', raising legal and ethical concerns.

Officials revealed alarming irregularities in the bank's practices, particularly concerning mortgages based on 'power of attorney'. Despite a 2020 directive banning such loans, transactions persisted, leading to disputes and the subsequent arrest of Sharma and former bank officials.

The Enforcement Directorate's involvement has exposed the full extent of the fraudulent operations, with over Rs 500 crore in loans allegedly obtained through dubious means. The ongoing investigation has resulted in multiple arrests, highlighting pervasive corruption within the bank.

(With inputs from agencies.)